WellDynamics Acquires Halliburton's Reservoir Performance Monitoring Business

Business Wire, Jan 10, 2007

Acquisition Strengthens Company's Position in Permanent Monitoring Market and Provides Foundation for Growth

HOUSTON -- WellDynamics Inc., the leading provider of intelligent completion technology to the upstream oil industry, today announced that it has acquired Halliburton's (NYSE:HAL) Reservoir Performance Monitoring (RPM) business. The acquisition complements WellDynamics' 2005 acquisition of The Wood Group's Production Technology business as part of its strategy to expand its SmartWell[R] intelligent completion technology business.

"Acquiring the RPM business not only enriches WellDynamics' existing permanent monitoring capabilities, but also enables us to better serve customers in both the premium and cost-effective permanent monitoring markets with a larger support team and a long history of quality product development," said Phil Longorio, president and CEO, WellDynamics. "We are also excited about the new opportunities for innovation that RPM's global market and product focus bring to WellDynamics. Having this expertise in-house will give us a greater ability to focus on innovative technologies, such as fiber optics, that deliver greater value to our permanent monitoring customers."

The RPM business consists of three primary components - fiber optic systems, the EZ-Gauge[R] capillary tubing systems, and electronic systems. The fiber optic systems include the OptoLog[R] DTS fiber optic distributed temperature monitoring method, as well as other fiber optic sensor systems. The EZ-Gauge capillary tubing system is a reliable and long-lasting downhole monitoring system which features no electronics and no moving mechanisms. The electronic systems include the Symphony[R] electronic permanent P/T monitoring systems, as well as a range of other electronic pressure and temperature monitoring systems.

Jim Renfroe, senior vice president of Strategy for Halliburton, said: "We are pleased to complete this next step in aligning technologies where they belong. This move will allow WellDynamics to capitalize on all aspects of intelligent well completions and will allow our Halliburton Completion Tools product service line to increase its focus on other offerings."

About WellDynamics

WellDynamics, a joint venture company of Halliburton Energy Services and Shell Technology Ventures, is the global leader in providing intelligent completion technology for reservoir monitoring and control to the upstream oil industry. Its downhole flow control systems are today installed in more than 215 wells, and its permanent monitoring systems are in place in more than 800 wells. The RPM business brings to WellDynamics a track record of over 100 additional permanent installations, 110 OptoLog DTS wells, in excess of 2000 EZ-Gauge installations, and several thousand semi-permanent or retrievable DTS surveys.

Based in Houston, Texas, with offices around the world, WellDynamics boasts a customer list that includes more than 50 of the leading upstream companies. Visit the WellDynamics site at www.welldynamics.com.